Mobile phone network equipment maker Ericsson has posted a better than expected rise in third-quarter profit.
Net income was the equivalent of 398 million euros, boosted by cost cuts.
In addition several US phone operators have been buying new equipment upgrading their networks to cope with more smart phones, netbooks and tablet computers.
The Swedish company said it expects the recent supply chain problems that have plagued the industry to ease further in the months ahead.
The global economic rebound has touched off a scramble among telecoms firms, car makers, consumer electronics suppliers and other manufacturers for common parts such as computer chips, leading to supply problems.
Ericsson calculated that the component shortage sliced 200 to 300 million euros off its total sales in the quarter.
Chief Executive Hans Vestberg said the situation was getting better: “We hope and believe that we will see a gradual improvement (in the supply chain) during the fourth quarter. It is too early to say anything about 2011 – it depends a bit on demand.”
Rival Nokia Siemens Networks, which reported a quarterly loss one day previously, has been hurt by a scarcity of parts and Alcatel Lucent sees the shortages stretching into next year.